As of 12:00 Germany time (CEST, UTC+2)
TL;DR: U.S.-Iran peace hopes, falling oil and the AI earnings rally kept global equities near record highs into Thursday’s European session.
In Asian Equity Markets stocks advanced on Thursday as optimism around a possible U.S.-Iran peace deal, lower oil prices and strong technology earnings supported risk appetite. Japan’s Nikkei surged more than 5 percent after reopening from holiday, briefly moving above 63,000 for the first time, while the broader Topix gained around 3 percent. Semiconductor names led the move, with strong earnings from global chip companies continuing to fuel the AI trade. MSCI’s broadest index of Asia-Pacific shares outside Japan also rose to a fresh record high, helped by strength across Korea, Taiwan and broader technology-linked markets.
In Currency Markets the U.S. dollar stayed on the defensive as hopes for Middle East de-escalation reduced demand for safe-haven dollar exposure and supported oil-sensitive currencies. The yen remained underpinned by the risk of further Japanese intervention, with dollar-yen hovering around the mid-156 area after several sharp yen rallies in recent sessions. The euro and sterling were slightly firmer against the dollar, helped by lower oil prices and improved risk appetite. FX markets remained focused on whether a U.S.-Iran deal can actually reopen flows through the Strait of Hormuz, or whether the current move is mostly a headline-driven repricing.
In US Equity Markets stocks rallied on Wednesday as hopes for a U.S.-Iran agreement pushed oil lower and strong technology earnings extended the AI-led equity advance. The S&P 500 rose 1.5 percent to close at a record 7,365.12, while the Nasdaq Composite gained 2 percent to 25,838.94. The Dow Jones Industrial Average climbed 1.2 percent to 49,910.59, moving closer to the 50,000 level. Semiconductor and AI-related shares were again at the center of the rally, with Advanced Micro Devices helping drive momentum across the chip complex, while energy shares lagged as crude prices fell sharply.
In Commodities Markets oil extended its decline as markets priced in a higher probability of a U.S.-Iran peace agreement and a possible gradual reopening of the Strait of Hormuz. Brent crude fell below $100 per barrel, trading around the $99 area after dropping nearly 8 percent on Wednesday, while U.S. crude also remained under pressure near the low-$90s. The move eased some immediate inflation concerns and supported the broader risk rally. Gold gained for a third consecutive session, rising to around $4,740 per ounce as the weaker dollar and lower Treasury yields supported precious metals, while silver, platinum and palladium also moved higher.
In European Equity Markets stocks were little changed by late morning after Wednesday’s sharp rally, as investors assessed the credibility of the U.S.-Iran peace headlines and digested another heavy batch of corporate earnings. The pan-European STOXX 600 hovered around 623 points after gaining more than 2 percent in the previous session. France’s CAC 40 traded higher, while the UK’s FTSE 100 lagged as lower oil prices weighed on energy majors. Shell fell despite stronger profit, BP also declined, while luxury names such as LVMH and Hermes gained. Campari dropped sharply after missing revenue expectations, adding pressure to the beverage sector.
In Bond Markets yields drifted lower as falling oil prices reduced the inflation premium that had built during the Middle East conflict. The U.S. 10-year Treasury yield was down around 2 to 3 bps near 4.33 percent, while the two-year yield was broadly steady around 3.87 percent. In Europe, German 10-year yields hovered just below 3 percent after the prior day’s bond rally, with investors scaling back some of the most aggressive central-bank tightening expectations. The rates market remains highly sensitive to the next steps in U.S.-Iran talks, as a durable reopening of the Strait of Hormuz would ease inflation pressure, while a breakdown could quickly reverse the move.
